Case Problem -- Contracts -- A Trip Out of This World

• Fact Pattern:

Extreme Cola conducted an advertising campaign. It offered customers Extreme Cola Stuff for Extreme Cola Points. Extreme Cola Points were available on packages of its products. Customers could purchase additional points directly from Extreme Cola for 10 cents each as long as they had a minimum of 25 points from products. During television commercials, Extreme Cola showcased a number of its prizes such as a T shirt, a jacket, and sunglasses, and the number of points required to earn them. At the conclusion of the commercial, a happy customer is shown looking out the window of a space shuttle. The text reads orbit the earth 7,000,000 Extreme Cola points.

The television commercials and print advertisements referred customers to the catalog of Extreme Cola Stuff, which was available in select stores, through the mail, and on the Internet.

Jesse is a resident of the state of Texas, where he saw the Extreme Cola advertisement for a trip on a space shuttle to circle the earth. Jesse always wanted to go into space, so he was particularly interested in the trip on a space shuttle to circle the earth. Using the address indicated in the promotion, Jesse sent Extreme Cola a letter, an order form with 1 trip to circle the earth hand written on it, 1,000 Extreme Cola points, and a check for $699,900 to purchase the additional points.

Extreme Cola responded by writing Jesse a letter that says that a trip to orbit the earth is not included in the catalog and is not included on the order form which lists the 53 items that are available. Extreme Cola also said: The item that you have requested is not part of the Extreme Cola Stuff collection. It is not included in the catalog or on the order form. Only catalog merchandise can be redeemed as part of this program. The trip to orbit the earth in the commercial is fanciful and is included simply to create a humorous and entertaining advertisement. We apologize for any misunderstanding or confusion that you may have experienced. We are enclosing some free product coupons for you to use.

Extreme Cola returned Jesses check and points. Jesse wants Extreme Cola to perform the contract.

• Discussion Questions:

Extreme Cola characterizes the ad for a trip to circle the earth as zany humor. Extreme Cola also claims that no reasonable person would think that Extreme Cola was offering a trip to orbit the earth.

1. What happened here? Who did what to whom?
2. What is an offer? List each part of the definition separately. What page number(s) in the textbook explain offers? Is there a case in the chapter that you can use for guidance? If so, summarize it and explain how it is similar and how it is different.
3. Discuss the types of claims that Jesse might use if he files suit. Be specific. Explain the elements of each claim and which elements might be missing in the evidence.
4. Explain the defense(s) that Extreme Cola will use, their elements, and which elements might be missing in Extreme Colas defense.
5. What additional facts would you like to know in order to determine whether there was an offer? What other information would be important? Why would it be significant? This can include other factual information or additional information about the law.
6. Apply the definition of an offer to determine whether Extreme Cola made an offer to members of the public. Explain how you reached your conclusion. What examples support your conclusion?